Fri. Nov 22nd, 2024
GTCO

By Aduragbemi Omiyale

Guaranty Trust Holding Company (GTCO) Plc intends to source about N500 billion from the domestic and international capital markets for expansion, especially the acquisition of non-banking businesses, recapitalisation of its banking subsidiary, GTBank and others.

The financial services group disclosed this in a notice to announce its proposed capital raising of up to N500 billion next month.

The firm stated in a statement made available to Business Post that the funds would be raised through the issuance of its ordinary shares to targeted investors, including retail and others.

However, it plans to secure the approval of the Securities and Exchange Commission (SEC), the highest regulatory organ of the country’s capital market.

Recall that in March 2024, GTCO revealed its intention to raise about $750 million in capital after the Central Bank of Nigeria (CBN) directed banks in the country to increase their capital base, with GTBank expected to increase from N25 billion to N500 billion if it wants to continue to provide banking services to international customers.

In the disclosure issued on Tuesday, GTCO stated that, “The net proceeds of the proposed offering will be used for (i) the growth and expansion of the GTCO Plc Group businesses.

“Such planned growth and expansion will be effected through investment in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisition of non-banking businesses; and (ii) the recapitalisation of Guaranty Trust Bank Limited (GTBank Nigeria).”

It noted that, “An application will be filed for the approval of the board of the Nigerian Exchange Limited (NGX) concerning the listing and admission to trading of the ordinary shares on the NGX Official List.”

By Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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